Ola Electric Secures ₹17 Billion Debt Funding to Strengthen Financial Position

EV Giant Approves Fundraising Plan Amid Market Challenges

Ola Electric Mobility Ltd. has announced plans to raise up to ₹17 billion through private placement of Non-Convertible Debentures (NCDs), term loans, working capital facilities, or other eligible debt securities. The move comes as the company navigates market share fluctuations, regulatory scrutiny, and internal restructuring.

 

Key Highlights:

Debt Fundraising Plan: Ola Electric’s board has approved a ₹17 billion funding initiative through various debt instruments.

 

Private Placement Strategy: The company will raise funds via NCDs, term loans, and working capital facilities, in one or more tranches.

 

Market Challenges: Ola Electric has faced declining market share, tighter regulations, and financial hurdles, prompting the need for additional capital.

 

Strategic Growth Initiatives: The funds will be used to support expansion, operational improvements, and financial stability.

 

Competitive Landscape: Ola Electric lost its leadership position in the electric two-wheeler segment to TVS Motor in April, intensifying competition.

 

Ola Electric has been a key player in India’s EV market, but recent challenges have necessitated strategic financial moves. The company aims to reinforce its financial foundation and accelerate growth through this debt issuance.

 

Source:

Entrackr, Economic Times, Inc42